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2022/2023  KAN-CCMVV4052U  Procurement Value Creation

English Title
Procurement Value Creation

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Start time of the course Second Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 60
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Britta Gammelgaard - Department of Operations Management (OM)
Please find contact information for Student Hub, student Guidance Services etc. on My.cbs.dk
Main academic disciplines
  • Supply chain management and logistics
Teaching methods
  • Blended learning
Last updated on 11-02-2022

Relevant links
Learning objectives
The overall aim of the course is to provide students with theories, models and frameworks to help transform procurement to a value creating activity to the benefit of a company/an organisation as a whole. The overarching learning objective is application of a synthesized theoretical framework to a specific case company/organisation with the aim of transforming procurement activities to a strategic level. This learning objective requires fulfillment of the following sub-objectives:
  • Discuss how value is created by and through the procurement organization
  • Discuss how strategic procurement knowledge and competences can be developed, managed and integrated into corporate strategy
  • Explore and discuss the conditions for - as well as procurement's role in - successful collaboration on buyer-supplier innovation
  • Discuss how the procurement organization can contribute to increase sustainability and reduce risk of the organization as well as its global supply chains
  • Critically reflect on leadership roles, ambiguities and values in strategic procurement
  • Communicate procurement analyses and results to stakeholders
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved (see section 13 of the Programme Regulations): 1
Oral presentations etc.
Number of compulsory activities: 2
Number of compulsory activities, which must be approved: 1

Groups will present theory-based identification of practice problems in the individual teaching sessions. A plan for the presentations will be developed in the beginning of the course. Each presentations must consist of max. five Powerpoint slides and must be uploaded on Canvas the day before the presentation at the latest. Groups will consist of 2-4 students. Oral presentations will be assessed (accept/not accept).

The student will not have extra attempts to get the required number of compulsory activities approved prior to the ordinary exam. If the student has not received approval for the required number of compulsory activities or has been ill, the student cannot participate in ordinary exam. Prior to the retake the student will be given an extra attempt. The extra attempt is a 10 page home assignment that will cover the required number of compulsory activities. If approved, the student will be able to attend retake. Please note that students must have made an effort in the allocated assignments throughout the course. Students that do not participate in the assignments (no show/U) are not entitled to the extra assignment and will have to wait until the next ordinary exam to complete the course.
Examination
Procurement Value Creation:
Exam ECTS 7,5
Examination form Oral exam based on written product

In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and the individual oral performance, see also the rules about examination forms in the programme regulations.
Individual or group exam Oral group exam based on written group product
Number of people in the group 2-4
Size of written product Max. 10 pages
Definition of number of pages:

Groups of
2 students max. 5 pages
3-4 students max. 10 pages

Note that the exam is a group exam. If you are not able to find a group yourself, you have to address the course coordinator who will place you in a group.

Students who wish to have an individual exam might be able to write a term paper in the course. Please see the cand.merc. rules for term papers for more information.
Assignment type Synopsis
Duration
Written product to be submitted on specified date and time.
20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Grading scale 7-point grading scale
Examiner(s) Internal examiner and external examiner
Exam period Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
Re-take exam is to be based on the same report as the ordinary exam:

* if a student is absent from the oral exam due to documented illness but has handed in the written group product she/he does not have to submit a new product for the re-take.
* if a whole group fails the oral exam they must hand in a revised product for the re-take.
* if one student in the group fails the oral exam the course coordinator chooses whether the student will have the oral exam on the basis of the same product or if he/she has to hand in a revised product for the re- take.
Description of the exam procedure

A group synopsis identifying, discussing and arguing for a problem requiring transformation the procurement activities to value creation is the basis for the oral group exam. At the oral exam, the students present their theory-based solution to this practice based problem for the examiners. The presentation style should be as an advisor of the Chief Procurement Officer (CPO). A discussion of strengths and weaknesses of this solution should be included.
Course content, structure and pedagogical approach

The course takes its point of departure in the so-called "New Agenda" that suggests that the role of procurement should go from focus on cost efficiency alone to value creation for the company as a whole. The perspective of the course is that of the CPO's, the Chief Procurement Officer's whereby leadership issues such as change management and competence development become crucial.

 

Firstly, the course discusses how the term value creation applies to procurement and supply (chain) management. Secondly, the course discusses how procurement value is created by stakeholder management internally and externally. Further competence development and change management of the procurement organization are adressed.

 

Thirdly, specific areas where potential procurement value creation is obvious and discernible are turned to. These are buyer-supplier relationships and collaboration for innovation; management of suppliers for environmental and social sustainability; and reduction of risks in global supply chains.   

 

Finally, the course discusses leadership issues in procurement including ethical dilemmas how to tackle the dilemma of creating trust in supplier relationships at the same time as staying competitive in the market place. 

 

There will be a strong element of practice presentations and discussions in class with the purpose of understanding both practice and theory on a deeper level. These practice presentations may be used for the exam.
Description of the teaching methods
Based on theory, student groups identify potential practice problems. This will be followed by company presentations in class. Solutions to identified or presented problems - including pros and cons - are then discussed in the plenary session. The sessions are wrapped up with a discussion of the learning points from this theory-practice interaction. Mandatory literature will be presented in overview videos uploaded on Canvas before lectures.
Feedback during the teaching period
Oral feedback in class on group presentations as well as discussions of solutions.
Student workload
Preparation for lectures, incl group presentations 99 hours
Lectures (campus) 33 hours
Group synopsis 50 hours
Oral exam - including preparation 24 hours
Further Information

The course is part of Minor in Strategic Procurement but can be taken independently.
Expected literature
  • Barney, J.B. (2012), “Purchasing, supply chain management and sustained competitive advantage: The relevance of resource based theory”, Journal of Supply Chain Management, Vol. 48(2), pp. 3-6
  • Brewer, B. L., Aschenbaum, B. and Carter, J. R. (2013), “Understanding the supply chain outsourcing cascade: When does procurement follow manufacturing out the door?”, Journal of Supply Chain Management, Vol. 49(3), pp. 90-110
  • Buchanan, D. and Badham (1999), “Politics and Organizational Change: The Lived Experience”, Human Relations, vol. 52(5), pp.  609-629
  • Driedonks, B.A., Gevers, J.M.P. and van Weele, A.J.  (2010), “Managing sourcing team effectiveness: The need for a team perspective in purchasing”, Journal of Purchasing & Supply Management, 16, pp. 109-117
  • Eltanawy, R., Giunipero, L. and Handfield R. (2014), “Strategic sourcing management´s mindset: strategic sourcing orientation and its implications”, International Journal of Physical Distribution & Logistics Management, 44(10), pp. 768-795
  • Fawcett, S.E., McCarter, M.W., Fawcett, A.M., Webb, G. S. and Magnan, G. (2015), “Why supply chain collaboration fails: the socio-structural view of resistance to relational strategies”, Supply Chain Management: An International Journal, Vol. 20(6), pp. 648 – 663
  • Fraser Johnson, P.; Klassen, R. D.; Leenders, M. R.; Awaysheh, A. (2007), "Selection of planned supply initiatives: the role of senior management expertise", International Journal of Operations & Production Management, 27(12), pp. 1280 – 1302
  • Gold, S., Trautrims, A., Zoe Trodd, Z. (2015) "Modern slavery challenges to supply chain management", Supply Chain Management: An International Journal, 20(5), pp.485 - 494
  • Hesping, F. H. and Schiele, H. (2015), “Purchasing strategy development: A multi-level review”, Journal of Purchasing & Supply Management, 21, pp. 138-150
  • Karjalainen, K. et al (2009), “Non-Compliant Work Behaviour in Purchasing: An Exploration of Reasons Behind Maverick Buying”, Journal of Business Ethics, 85:245–261
  • Kern, D., Moser, R., Sundaresan, N. and Hartmann, E. (2011), “Purchasing Competence:  Stakeholder-based Framework for Chief Purchasing Officers”, Journal of Business Logistics, Vol. 32 (2), pp. 122-138
  • Ketchen, D.J., T. R. Crook and Craighead, C.C. (2014), “From Supply Chains to Supply Ecosystems: Implications for Strategic Sourcing and Research Practice”, Journal of Business Logistics, 35(3), pp. 165-171.
  • Mol, M. J. (2003), "Purchasing's strategic relevance", Journal of Purchasing and Supply Management, 9, pp. 43-50.
  • Nair, A. et al (2016), “How environmental innovations emerge and proliferate in supply networks: A complex adaptive systems perspective”, Journal of Supply Chain Management, 52(2), pp. 66-86 
  • Oke, A., Prajogo, D. and Jayaram, J. ((2013), “Strengthening the innovation chain: the role of internal innovation climate and strategic relationships with supply chain partners”, Journal of Supply Chain Management, Vol. 49(4), pp. 43-58
  • Peireira, C. R., Christopher, M. and Da Silva, A. (2014), “Achieving supply chain resilience: the role of procurement”, Supply Chain Management: An International Journal, Vol. 19(5/6), pp. 626-64
  • Ramsay, J. and Croom, S. (2008), "The impact of evolutionary and developmental metaphors on Purchasing and Supply Management: A critique", Journal of Purchasing and Supply Management, vol. 14, no. 3, pp. 192-204.
  • Schuh et al (2012), “The CPO. Transforming Procurement in the Real World”, Springer, New York,
  • Smith, W.K., Lewis, M. W. and Tushman, M. L. (2016), ““Both/And” Leadership””, Harvard Business Review, May, pp. 63-70
  • Tassabehji, R. and Moorhouse, A. (2008), “The changing role of procurement: Developing professional effectiveness”, Journal of Purchasing & Supply Management, Vol. 14(1), pp. 55-68
  • Van Weele, A. J. and van Raaij, E.M. (2014), “The future of purchasing and supply management research: About relevance and rigor”, Journal of Supply Chain Management, Vol. 50(1), pp. 56-72

 
Last updated on 11-02-2022